‘Massive Fourth Quarter’—Why Ethereum Could Outperform Bitcoin After Serious Fed Price Warning

‘Massive Fourth Quarter’—Why Ethereum Could Outperform Bitcoin After Serious Fed Price Warning

Bitcoin and crypto prices have fallen sharply over the last month, with the bitcoin price losing 25%.

The bitcoin price crash, that's dragged on the price of ethereum and other cryptocurrencies, has seen some $600 billion wiped from the combined crypto market over the last month.

Now, in the face of Federal Reserve's increasingly hawkish attitude going into 2022, billionaire investor Mike Novogratz has said he expects the ethereum price to outperform bitcoin as the Fed looks to tackle inflation.

Sign up now for the free CryptoCodex—A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday

"People see ethereum as a technology bet and bitcoin more as a de-basement of fiat currency bet," Novogratz said, speaking this week on CNBC ahead of the latest U.S. consumer price index data that showed prices rose 6.8% in the year to November, taking annual inflation to a 40-year high.

"Crypto's not trading as bullish as equities because you see this tension, that the Fed's going to take the booze away from the punchbowl much sooner than we thought," Novogratz said. "Broadly that shouldn't be good for risk assets."

CryptoCodex—A free, daily newsletter for the crypto-curious

However, Novogratz remains bullish on bitcoin, ethereum and the crypto market broadly, pointing to fresh interest coming from institutional investors and out of regions like the Middle East.

"There are new players lining up to participate in the crypto economy," Novogratz said, adding he doesn't see the bitcoin price falling under $40,000. "From the Mid-East, all over the U.S., pension funds ... people have woken up to crypto being an asset class, that bitcoin is part of a crypto portfolio, even if the Fed starts being more hawkish."


Subscribe to get our top stories